As homeowners return to flooded homes, they face some complex financial
decisions on repairing the damage. It's likely that even those with flood
insurance will find that not all their losses are covered. Some will fix their
homes, others may decide it's not worth the money. Mark Steil of Mainstreet
Radio reports:

A CREW OF TEN SALVATION ARMY VOLUNTEERS removes flood-ruined carpets, paneling
and drywall from a Montevideo home. The volunteers use crowbars, screwdrivers, and muscle:

(SOUND OF CARPET RIPPING) GOD, I DON'T DO JAZZERCISE FOR NOTHING!

The flood waters filled the basement and stood about two feet deep on the first
floor of the house owned by Nancy Robarge and her husband. Nancy helps the
workers carry the debris outside. The workers walk from the porch to the
sidewalk down two wood planks; the flood waters carried off the front steps,
which were made of cement. Nancy Robarge is grateful for the volunteers, but
nervous about the future:

WE HAVE TO WAIT FOR THE FLOOD INSURANCE GUY TO COME OUT AND LOOK IN THE
BASEMENT AND HOPEFULLY ALL THIS WORK HERE HASN'T GONE IN VAIN. 'CAUSE I HAVE NO
IDEA WHAT THE DAMAGE IS DOWN THERE, WHAT THEY'LL COVER.

Robarge speaks through a thick dust mask. She suffers from allergies and
wears the mask to protect herself from mold particles and other unknowns left by
the flood water:

I'M HOPING BETWEEN THE FLOOD INSURANCE AND FEMA OR WHATEVER PLACES ARE
AVAILABLE FOR HELP I JUST HOPE. . . WE GET HELP. IT'S HARD ENOUGH FOR SOMETHING
LIKE THIS TO HAPPEN; AND THEN TO WORRY ABOUT FINANCIAL SITUATIONS AND STUFF.
(SIGHS).

Those kinds of concerns will be duplicated in thousands of flood-damaged homes
in Minnesota, North Dakota and South Dakota as the region rebuilds. The first
step for most homeowners is to contact the Federal Emergency Management Agency.
FEMA's Gene Romano says everyone with flood damage should register with the
agency:

FEDERAL PROGRAMS APPLY TO UNINSURED AND UNDER-INSURED LOSSES THAT PEOPLE
MAY HAVE. WE WOULD ENCOURAGE PEOPLE NOT TO PREJUDGE THEMSELVES. TO GO AHEAD AND
CALL AND APPLY AND LET US WORK WITH THEM TO DETERMINE IF THEY ARE ELGIBLE FOR
ANY OF THE STATE OR FEDERAL PROGRAMS.

The toughest decision homeowners face is whether to fix their house. If a home
suffered major damage and is in a 100-year flood plain, the owner may face
stringent rebuilding requirements. Cities participating in the federal flood
insurance program are required to adopt ordinances designed to limit flood
damage. FEMA's Romano says typically a flood plain house with major damage cannot
be rebuilt unless the owner takes steps to limit future damage, such as raising
the house by building a higher foundation:

WE KNOW THAT THE PEOPLE THAT HAVE GONE THROUGH THE FLOODING HERE IN
MINNESOTA - IT IS A TERRIBLY DIFFICULT AND VERY EMOTIONAL POINT FOR THEM.
AND WE WANT TO TRY AND HELP THEM NOT HAVE TO GO THROUGH THIS AGAIN. AS WELL AS
BE PRUDENT AND TAKE A LOOK AT IT FROM A TAXPAYER'S STANDPOINT, THAT THE DAMAGES
THAT ARE BEING COVERED ARE NOT CONSTANTLY REPETITIVE.

Many homeowners will face a cash crunch. Some have been out of work for several
weeks, and have spent large amounts of money fighting the flood, things
likes pumps, lumber and motel rooms. There are government grants available for
individuals to help cover some of the expenses. Ahead are larger bills, such as
mortgage payments. Minnesota Housing Finance Agency commissioner Kit Hadley
hopes banks and other lenders give flooded homeowners extra time to make their
house payments:

THE MORTGAGES OF PEOPLE WHO LIVE IN THE RED RIVER AND THE MINNESOTA RIVER
VALLEYS ARE HELD BY LENDERS ALL ACROSS THE COUNTRY. IS THERE SOME WAY WE CAN TRY TO COORDINATE INFORMATION TO THOSE LENDERS? TRY TO WORK ON SOME STRATEGIES SO
THAT HOMEOWNERS DO NOT HAVE TO ADD THIS TO THE LIST OF THINGS THAT THEY HAVE TO
WORRY ABOUT IN THE NEAR TERM?

Huge demand is expected for federal government help in flood areas. In East
Grand Forks it's estimated only 14% of more than 3000 damaged homes were
covered by flood insurance. Already about 45 million federal dollars in flood
relief have been approved for Minnesota, paying for things such as emergency
housing, crisis counseling, and debris removal. It will go much higher, probably
reaching several hundred million dollars. The final figure is crucial because it
determines how much will be allocated for long-range flood-fighting efforts.
When the last nail is hammered, and the final floor repaired, the federal bill
is added up. 15% of that total is then allocated for flood mitigation. The most
visible item that money will be spent on is likely to be buyouts. It's expected
hundreds of flood-prone homes will be purchased with the money. They'll either
be moved or demolished.